Issue

Capital works depreciation (CWD) is not showing in the Profit and Loss. How do I resolve this issue?

Cause 

For SMSF's in Class, depreciation for Plant & Equipment under Division 40 is recorded for tax and accounting purposes. In the Depreciation Worksheet, CWD under Division 43 is for tax purposes and will show as a deduction in Section C of the annual return for the SMSF. This information is available on the ATO website.

Solution 

CWD can only be recorded using either the Depreciation Worksheet or manually entered.

Refer to the User Guide on Depreciation Worksheet for more information.

For Trusts, you can refer to How to include Capital Works Depreciation (CWD) in Accounting Book Cost (Trusts).